Paypal (PYPL - Free Report) closed the most recent trading day at $90.61, moving +0.65% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, added 0.15%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 9.2% over the past month. This has outpaced the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.98% in that time.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be October 18, 2018. The company is expected to report EPS of $0.54, up 17.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.67 billion, up 13.18% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.34 per share and revenue of $15.47 billion, which would represent changes of +23.16% and +18.14%, respectively, from the prior year.
Any recent changes to analyst estimates for PYPL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. PYPL is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PYPL has a Forward P/E ratio of 38.45 right now. Its industry sports an average Forward P/E of 72.65, so we one might conclude that PYPL is trading at a discount comparatively.
It is also worth noting that PYPL currently has a PEG ratio of 2.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PYPL's industry had an average PEG ratio of 3.99 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.